Using derivatives during market crash

[vesfreq]

In the first para you were comparing options with margins, which are not the same. As you mentioned in your second reply, you mentioned higher premiums when the writer thinks that the stock will be higher within the period of the option. Yes, in that case I agree with you that the cost of the option may outweigh the benefits that it may provide.

I am considered new to the market and have not yet experienced a crisis. But I am sure that there will be one in coming years and preparing myself for it; hence the consideration of this topic. But about having no free lunch in this world, its very subjective.

thanks weijian & tanjm for your helpful opinions, appreciate it!

The guys gave pretty spot on advice on the use of options. I wouldn't touch options, for the fact that it has a limited life span and it increases the already high degree of uncertainty in equity investments.

For your purpose, margin may be workable, but will not give the kind of leverage like an option. Suppose it also depends on the brokerage.